Learn about what drives the Australian property cycle.. why it's one of the most lucrative cycles on the globe, and how your understanding of taxation policies can help you navigate the turns..

The Impact on the 18.6-year Land Cycle from increased Land Taxation - no winner's curse? Prices/rents up or down?

In a bold move that has sent a few shockwaves through the real estate industry, the Victorian government has announced the implementation of a new land tax levy. The levy — a part of the COVID debt levy included in this year’s budget — aims to raise $4.7 billion by reducing the tax-free threshold for general land tax rates on properties that are not considered principal places of residence. (The details are here .) While the measure is intended to ease the burden on the state

A few weeks ago the chief economics commentator at the Financial Times in London, Martin Wolf, penned an excellent article called ‘ The Case for a Land Tax is Overwhelming ’. Here’s an excerpt: ‘ I have long been a supporter of taxing land value. Such a tax would be economically efficient and morally just. But it has been politically impossible: the landowning interest, which now includes a large part of the population as owner-occupiers, has been too strong. This is a trage

I had an interesting question from a Cycles, Trends & Forecasts subscriber this week. Take a look: ‘ Catherine, I bought my house here in South Melbourne in October 1981. ‘ It cost me $ 55,000, a 2 bedroom weather board, north yard, free standing with side gateway, all in good order. ‘ I could sell it today for about $1,300,000 $55,000 subtracted from $1,300,000 leaves the sum of $1,245,000.  ‘ Is this sum what you mean by economic rent, I was sleeping a third of that time.